Equities First Holdings – The Leading Source Of Highly Flexible Stock-Based Loans

Getting a business loan is not easier in the new economy, particularly when banks and financial institutions have increased the criteria required to disburse loans. According to the premier source of alternate loans, the CEO of Equities First Holdings, Al Christy Jr., high net-worth individuals and businesses have started to look towards alternate sources of loans. For instance, his company, Equities First Holdings is seeing a rapidly increasing trend where borrowers are interested in getting loans against stock-based collateral. For these investors, loans against the stock is a viable method to get the needed funding required for growth.

Al Christy Jr. explained that there is another reason why borrowers are attracted, besides tightening of traditional loans. He suggests that loans collateralized by stocks offer very flexible and loan-friendly terms that most investors have not experienced, earlier. For example, the loan-to-value ratio of loans against the collateral is generally very high, which can be anywhere between 50 and 75 percent compared to the traditional loan that only promise a loan-to-value ratio between 10 and 50 percent.

In addition to the higher value, stock-backed loans are non-resource, which means that the borrower can walk away with the loan even if the value of the original stock goes down. Perhaps, another advantage is the fixed rate of interest, which does not change in the long-run. The fixed rate is a blessing in a global environment full of turbulent situations such as the decision of Britain to exit the European Union. He emphasized that the loan can be used for any purpose. Actually, Al Christy Jr. also warned that stock-based loan and margin loans are different because a firm may liquidate the borrowers collateral without warning in case of a margin call.

 

About Equities First Holdings

Equities First Holdings is a premier provider of stock-based loans to high-net-worth clients and businesses. In the last 14 years, the company has completed more than 650 transactions. Operating from 9 global offices, Equities First Holdings, is known for offering a highly personalized service, which emphasizes one-to-one dealing. Such hyper-focused meetings result in more flexible loan terms and a variety of pathways.

For more information please visit http://www.equitiesfirst.com/

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